Decision No. 82-A-2011

March 18, 2011

File No. M4835-61-8

Delta Air Lines, Inc. carrying on business as Delta Air Lines, Delta and Delta Shuffle(Delta)on behalf of itself, SkyWest Airlines, Inc. carrying on business as Delta Connection and United Express (SkyWest)and Virgin Blue International Airlines Pty Ltd. carrying on business as V Australia (V Australia), has applied to the Canadian Transportation Agency (Agency) for approvals topermitV Australiato provide its scheduled international service betweenAustraliaandCanadaby selling transportation in its own name on flightsoperated by Delta and/or SkyWest between the United States of America and Canada, for an indefinite period or for such period as may be authorized by the Agency.

Deltahas also requested an exemption from the application of subsection 8.2(2) of the Air Transportation Regulations (ATR), which requires the filing of an application for an approval at least 45 days before the first planned flight. The Agency finds that compliance with subsection 8.2(2) of the ATR is impractical in this case. Accordingly, the Agency, pursuant to paragraph 80(1)(c) of the Canada Transportation Act (CTA), exempts Delta from the application of subsection 8.2(2) of the ATR.

V Australia is licensed to operate a scheduled international service in accordance with the Agreement between the Government of Canada and the Government of Australia relating to Air Services signed on July 5, 1988 (Agreement).

The Agency has considered the applications and the material in support and is satisfied that they meet theremaining requirementsof section 8.2 of theATR.

With respect to the duration of the approvals requested, in light of the provisions of the Agreement, the Agency considers three years to be appropriate.

Accordingly, the Agency, pursuant to paragraph 60(1)(b) of theCTA and section 8.2 of the ATR, approves the use by V Australia of aircraft and flight crew provided by Delta and SkyWest, and the provision by Delta and SkyWest of such aircraft and flight crew to V Australia, to permit V Australia to provide its scheduled international service on licensed routes between Australia and Canada by selling transportation in its own name on flights operated by Delta and SkyWest between the United States of America and Canada, for a period of three years from the date of this Decision.

These approvals are subject to the following conditions:

1. V Australia shall continue to hold the valid licence authority.
2. V Australia shall apply its published tariffs, in effect, to the carriage of its traffic. Nothing in any commercial agreement between the air carriers relating to limits of liability shall diminish the rights of passengers as stated in such tariffs.
3. The air service approved shall only be provided as long ascode-sharing agreementsproviding for such service remain in effect.
4. Delta,SkyWestandV Australiashall continue to comply with the insurance requirements set out in subsections 8.2(4), 8.2(5) and 8.2(6) of the ATR.
5. V Australia shall continue to comply with the public disclosure requirements set out in section 8.5 of the ATR.
6. Delta, SkyWest and V Australia shall provide the Agency with a copy of any new agreement or amendments to theircode-sharing agreements, including any new or amended annex, without delay.
7. Air transportation using V Australia's code on flights operated by Delta and/or SkyWest between the United States of America and Canada shall not be sold separately and shall only be available to traffic carried on a continuous journey under V Australia's code between Australia and Canada. No local traffic may be carried under V Australia's code between the United States of America and Canada.
8. These approvals do not apply to the carriage of cargo.

These approvals do not exempt Delta, SkyWest and V Australia from the requirements of other legislative acts or regulations, including those of Transport Canada.

Members

• Raymon J. Kaduck
• J. Mark MacKeigan